Entitlement to abatement of customs duty requires timely claim submission and compliance with valuation procedures under the Customs Act.

1 The appellant assessee has filed this appeal under S.130E of the Customs Act, 1962 (for short "the Act") against Final Order No. C-I/II/WZB of 2000 dated 2-1-2001 in Appeal No. C/533-V/99/Bom passed by the Customs, Excise and Gold (Control) Appellate Tribunal, West Zonal Branch at Mumbai (hereinafter referred to as "the Tribunal") whereby the Tribunal reversed the order in appeal passed by the Commissioner of Central Excise on 8-3-1999 and held that the appellant could not be granted abatement of the duty.

2 Briefly stated, the facts of the case are:
M/s Priya Blue Industries Pvt. Ltd., Plot No. V1, Sosiya (hereinafter referred to as "the importer") hold import export code number and also Central excise registration. It imported vessel MV VLOO ARUN under OGL for the purpose of breaking. The vessel weighing 40,017 LDT had been purchased for US $6,849,839.00 i.e. @ US $167 per long ton. The importer got a letter of credit bearing No. 58 IDC 21.97 dated 12-8-1997 opened in favour of Ruby Enterprises Inc., 2018, Antwerp, Belgium, the foreign sellers for US $6,849,839.00 which amount was remitted by Vysya Bank Ltd., Mumbai to the beneficiaries on 12-8-1997 itself. The importer had thereafter sought and been granted permission for beaching the vessel at the designated plot by the proper officer of Customs. On account of heavy current and storm the vessel got dragged towards Plot No. V5, Sosiya and got grounded there. The importer vide its application dated 24-6-1997 requested the Assistant Commissioner of Customs Division, Bhavnagar for extension of time for filing the bill of entry for home consumption in respect of the aforesaid vessel. The requisite permission was granted by the jurisdictional Assistant Commissioner. The importer, however, did not file the bill of entry and sought further extension of time which was declined by the Assistant Commissioner, Bhavnagar. The importer thereafter entered into a memorandum of understanding on 10-9-1997 with Udyani Ship Breakers Ltd. ("the appellant" herein) who are the owners of Plot No. V5, Sosiya in front of which the vessel was grounded for sale of the ship for Rs 12,01,00,000. An agreement to sell was executed on 11-9-1997 and the sale was effected by bill of sale on 26-12-1999.

3 The appellant also holds import export code number as well as Central excise registration for ship breaking. The appellant presented a bill of entry bearing No. SBY-III/59/97-98 dated 12-9-1997 before the Superintendent of Customs, SBY - Alang. The price declared by the appellant was Rs 12,01,00,000. As the price declared by the appellant was abnormally low, a reference was made to the appellant for making a correct declaration with regard to the price.

4 The importer and the respondent produced copies of the following documents:
(a) the original memorandum of agreement dated 2-6-1997 entered into between the foreign seller and the importer,
(b) a copy of the commercial invoice issued by the foreign seller in favour of the importer,
(c) letter of credit opened in favour of the foreign seller for the amount of US $6,849,839.00 by Vysya Bank Ltd., Mumbai on behalf of the importer.
(d) a copy of the memorandum of agreement between the importer and the appellant, and
(e) a copy of the letter of credit bearing No. KHG/ILC/103/97 dated 12-12-1997 for Rs 12,01,00,000 issued by Dena Bank, Bhavnagar by the appellant on Dena Bank, Mumbai in favour of the importer.
(f) a copy of the commercial invoice in their favour issued by the importer to the appellant.

5 Thus, the facts which emerge from the above are: the importer entered into an agreement or memorandum with the foreign seller on 2-6-1997. On 4-6-1997 the importer took physical delivery of the ship. On 24-6-1997 the importer requested time for filing the bill of entry. On 12-8-1997 LC was opened and on the same day the amount was remitted to the foreign seller. Thereafter the importer sought and was given permission for beaching the vessel. The agreement of sale betwee